BTC Supply Percentage with Last Active Time of over 5 Years Reaches Record High

According to reports, Glassnode data shows that the supply percentage of BTC with a last active time of more than 5 years has just reached 28.596%, setting a new historical high.

The proportion of supply volume with BTC’s last active time of more than 5 years has reached a historic high

Bitcoin, the world’s most famous cryptocurrency, has been around for over a decade. As time passes, more and more bitcoins are mined, traded, and lost. Glassnode, a crypto analytics firm, just released a report that shows the supply percentage of BTC with a last active time of more than five years has reached a new historical high of 28.596%. This milestone is noteworthy for several reasons, and this article will cover everything you need to know about it.

Understanding Bitcoin Supply

Before we dive into the significance of the BTC supply percentage, it’s essential to understand how bitcoin supply works. Unlike traditional currencies, bitcoin supply is finite, with a maximum cap of 21 million coins. Currently, there are around 18.7 million bitcoins in circulation, with about 3.3 million left to be mined. The creation of new bitcoins is done through a process called mining, where powerful computers solve complex algorithms to add new blocks to the blockchain, which is the public ledger that records all transactions.

The Meaning of Last Active Time

Now that you know how bitcoin supply works, let’s talk about last active time. Last active time refers to the last time a specific bitcoin address was active on the network. In other words, it is the period since the last bitcoin transaction was made from or to that address. Glassnode’s report focuses on the supply percentage of BTC with a last active time of more than 5 years. This means that the bitcoin in question has been idle for over five years, with no movement in or out of the address.

The Significance of the Record High

The supply percentage of BTC with a last active time of over 5 years hitting a record high is significant for several reasons. One of the most notable reasons is that it shows that a substantial portion of the bitcoin supply is being held in long-term storage or lost forever. It’s also a sign that bitcoin is becoming a more valuable asset that people are willing to hold onto, rather than transact in.
Another reason this milestone is noteworthy is that it shows a potential shift in the market. Bitcoin is known for being volatile, with prices rising and falling rapidly. However, the increased number of dormant bitcoins could lead to a more stable market, as those holding onto bitcoin for the long term are less likely to be swayed by short-term market fluctuations.
Finally, the record high in supply percentage of BTC with a last active time over 5 years could lead to increased demand as people try to get their hands on the available bitcoin. With only 3.3 million bitcoins left to be mined, the scarcity factor has never been higher, potentially leading to a buying frenzy.

Conclusion

In conclusion, Glassnode’s report on the record high supply percentage of BTC with a last active time of more than 5 years is an exciting milestone for bitcoin. It highlights the long-term value that people are seeing in bitcoin as an asset and could lead to a more stable market in the future. Additionally, with the scarcity factor increasing, more people may look to buy bitcoin, potentially driving up demand and prices. As with any investment, there are always risks involved, but the record high supply percentage of BTC with a last active time of more than 5 years is undoubtedly a positive sign for the future of bitcoin.

FAQs

Q: What does last active time mean in the context of bitcoin?
A: Last active time refers to the last time a specific bitcoin address was active on the network, or the period since the last bitcoin transaction was made from or to that address.
Q: Why is the record high supply percentage of BTC with a last active time of more than 5 years significant?
A: The record high suggests that a substantial portion of the bitcoin supply is held in long-term storage or lost forever, leading to increased scarcity and potentially driving up demand and prices.
Q: Is bitcoin a good investment?
A: As with any investment, there are risks involved. However, the long-term value that people are seeing in bitcoin as an asset and the increasing scarcity of available bitcoins could make it an attractive investment for some. However, it’s always important to do your research and understand the risks before investing.